The Terraform AzureAD provider version 2.0 exclusively uses the Microsoft Graph API, marking a significant transition from the legacy Azure Active Directory Graph API. This release includes numerous schema and behavioral changes to enhance user experience and improve object management. The new version requires authentication using fine-grained API roles, rather than directory roles, and introduces new required UUID properties for application roles and OAuth 2.0 permission scopes. Additionally, it adds a new resource and data source to manage pre-authorized applications and improve readability of application configurations, respectively. It is recommended to consult the upgrade guide before upgrading, as this release contains several breaking changes, and to use Terraform 1.0 for optimal functionality.